JERUSALEM—Israel said Tuesday it has successfully tested a system designed to intercept ballistic missiles outside the earth’s atmosphere. The Arrow Weapon System is part of an array of missile defenses Israel has developed in recent years to protect itself in any future conflict with archenemy Iran or regional terrorist groups, such as the Lebanese Hezbollah or the Palestinian Hamas in the Gaza Strip, both allies of Iran. The Defense Ministry said the system detected the target and fired two Arrow 3 interceptors at it, calling the mission a success. “With every step forward, with every development, we equip the state of Israel with the capabilities to defend itself against developing threats,” Defense Minister Benny Gantz said in a statement. “Our systems provide Israel with the freedom to maneuver strategically.” The system was developed by Israel Aerospace Industries, a state-run defense firm, in cooperation with the U.S. Missile Defense Agency. “This …